2019

Hans runs a sole proprietorship. Hans has reported the following net 1231 gains and losses since he began business. Net 1231 gains shown are before the look-back rule. (Leave no answer blank. Enter zero if applicable.)

	Net 1231
Year	Gains/(Losses)
Year 1	$(73,500)
Year 2	19,250
Year 3	0
Year 4	0
Year 5	13,400
Year 6	0
Year 7 (current year)	54,250

b. Assume that the $50,000 net 1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary income in year 6?

The answer is not 40850, 40350, 9150, 0, or 50000. The computer says those answers are incorrect.